S&P 500 futures were largely unchanged early Thursday after Wall Street snapped a three-session losing streak in the previous session, as investors took some comfort from a pullback in U.S. Treasury yields. Nasdaq-100 futures gained 0.33%, while Dow Jones Industrial Average futures slipped 35 points, or 0.07%, leaving markets cautiously positioned ahead of the new trading session.
The S&P 500’s rebound on Wednesday was supported by easing pressure in the U.S. bond market after the Treasury Department announced plans to more than double its repurchases of longer-dated debt. The move covers 10-, 20- and 30-year Treasury securities and comes after the 30-year Treasury yield climbed to its highest level in nearly two decades earlier in the week, raising concerns about borrowing costs and pressure on stocks.
Despite the latest relief, some market watchers remain cautious about the outlook for long-term U.S. interest rates. Michael Schumacher, former head of macro at Wells Fargo, said he expects yields could continue rising, pointing to the country’s large budget deficit and increasing defence spending as factors that could keep pressure on the bond market.
Global markets were mixed on Thursday as investors remained selective amid continuing economic and geopolitical concerns. European stocks opened slightly lower, with London’s FTSE 100 down 0.2%, while France’s CAC 40 and Germany’s DAX were broadly flat. In Asia, Japan’s Nikkei 225 climbed 1.36%, South Korea’s Kospi surged 5.89%, Australia’s S&P/ASX 200 rose 0.33%, while China’s CSI 300 edged up 0.1%.
Attention now turns to fresh U.S. economic data and corporate earnings for clues about the strength of the economy and the direction of markets. Investors are watching weekly jobless claims, with economists expecting 210,000 new claims for the week ended August 15. Walmart is also scheduled to release its fiscal second-quarter results before the market opens, giving investors another important update as Wall Street weighs whether the recent rebound can gain momentum.
source: cnbc
